ICRA Techno Analytics plans to pick up majority stake in BPA Technologies

KOLKATA: ICRA Techno Analytics (ICTEAS), the Kolkata-headquartered software solutions company promoted by the Indian rating major ICRA Limited,

BPA offers strategy consulting, implementation and application management services in its areas of specialisation. It is also focussed on 'enterprise content management', 'enterprise portal and collaboration'. The California company has development centres in Chennai and Visakhapatnam, besides a sales and customer service centre in Singapore.

The acquisition is structured in three tranches over a period of three years. The valuation of BPA would be performance-linked and is estimated at approximately $ 16 million. The turnover of BPA for the year ended December 31, 2011, was about $ 10 million. IMaCS was the sole transaction advisor to ICTEAS on this transaction.

Speaking to mediapersons, ICRA vice-chairman & group CEO P.K. Choudhury said: "ICTEAS has its clients across the globe: in the US, the UK, Asia and Africa. The business now requires a larger presence in the US than we currently have, and BPA gives us exactly what we need. The skill sets of the two companies are complementary, and there is significant convergence in terms of the industry verticals that ICTEAS and BPA focus on."

Elaborating on the strategic fit between ICTEAS and BPA, ICTEAS managing director Prateep Guha, said, "Enterprise Content Management is a fast growing space in the IT world. It has a lot of synergy with our focus area - business intelligence and analytics. The teaming up of ICTEAS and BPA makes eminent business sense in the emerging IT scenario."

"Since both BPA and ICTEAS have global delivery models, are focused on offering innovative and cost-effective solutions to clients across industry verticals, the scope to scale up operations post acquisition would be considerable," said Murali Peruvemba, president, BPA, on the implications the acquisition would have.